GE Power India bags contracts worth ₹775 crore from Jaiprakash Power Ventures

GE Power India has bagged contracts from Jaiprakash Power Ventures worth ₹775 crore according to an exchange filing posted by the company.

Jaiprakash Power Ventures has awarded contracts pertaining to the supply, transportation, erection and commissioning of its Nigrie Super Thermal Power Plant and Bina Thermal Power Plant. The contract for Nigrie Super Thermal Power Plant amounts to ₹490.5 crore with an execution time of 33 months while that of Bina Thermal Power Plant amounts to ₹284.4 crore with an execution time of 30 months.

Shares of GE Power India were trading over 3.5% higher during Thursday morning trade. The stock has gained over 29% in the last five days.

Earlier, the company had intimated about certain aspects of the split that was proposed at the global level. In November 2021, General Electric Company had announced its intention to split GEC into three public companies. GEC said it is working on a plan to consolidate its energy business vertical into GE Vernova LLC and the spin-off of GE Vernova LLC, whereby all the then existing shareholders of GEC would be issued shares of GE Vernova LLC followed by listing of GE Vernova LLC on the stock exchanges in the United States.

GE Power India said that the spin-off of the energy business would lead to a transfer by GEC of 68.58% of its ultimate and indirect shareholding in GE Power India to GE Vernova. As a result, GE Vernova will substitute GEC and will become the ultimate holding company of all GE entities within the energy business.

For the third quarter, GE Power India reported a revenue of ₹491.2 crore, down 9.8% on a year-on -year basis. It reported a net profit of ₹37 lakh compared to a net loss of ₹139.2 crore in the same period a year ago. The company had reported an order backlog of ₹3,437.4 crore, down 14.5% on a year-over-year basis.